In a June 6, 2018, USAToday article, Jeff Cox writes about our current labor shortage, “there are now more openings than there are workers.” He later shares, “there were just shy of 6.7 million open positions in April, “ and then, “As of April, the total workers looking and eligible for jobs fell to 6.35 million, a decrease from 6.58 million the previous month. The number fell further in May to 6.06 million.” In other words, we have a labor shortage that is growing.
Further, in the article, he shares, “Given these trends, the sluggish wage growth rate is even more perplexing,” said Cathy Barrera, chief economist at ZipRecruiter, an online employment marketplace. “If employers want to fill these 6.7 million job openings, they are either going to have to raise wages or find more clever and creative ways to recruit workers off the sidelines.”
Raising wages is something that not all businesses can do, especially direct wages. However, creating an environment where you have higher quality employees who are rewarded for increases the business achieves as a result of the efforts of the higher quality employees could be an answer that any business can do. In essence, you can create a process that eliminates any perception of a labor shortage.